Gross refers to the total and Net refers to the part of the total that really matters. For example, net income for a business is the profit after all expenses, overheads, taxes and interest payments are deducted from the gross income. Similarly, gross Weight refers to the total weight of the goods and the container and packaging. On the other hand, net weight refers to only the weight of the goods in question. For most food products, manufacturers print the net weight on the packaging for the benefit of consumers.
Comparison chart
| Gross | Net | |
|---|---|---|
| Meaning | The term gross refers to the total amount made as a result of some activity. It can refer to things such as total profit or total sales. | Net (or Nett) refers to the amount left over after all deductions are made. Once the net value is attained, nothing further is subtracted. The net value is not allowed to be made lower. |
| Taxation | Salaried people now pay income-tax on their gross income as per Income-Tax Act of 1961. | Businesses and self-employed persons pay tax on their net income as per Income-Tax Act of 1961. |
| Gross vs Net Income | Gross income is calculated by subtracting the cost of goods sold from revenue. | Net income is calculated by subtracting expenses such as SG&A (selling, general and administrative expenses), interest payments and taxes from gross income. |
| Gross vs Net Margin | Gross margin = Gross income as a percentage of revenue | Net margin = Net income as a percentage of revenue |
| Gross vs Net Weight | In the context of weight, gross refers to the weight of the product and the packaging. | In the context of weight, net refers to the weight of the actual product (without the packaging). |